Category 1
8. Mark’s credit report indicates non-payment of a credit card bill. Mark
wants to correct this error. Which act was passed by Congress to assist
Mark in correcting this dispute?
A. Disputed Charges Reform Act
B. Equal Credit Opportunity Act
C. Fair Credit Reporting Act
D. Fair Debt Collection Practices Act
C. Fair Credit Reporting Act
3. What is the purpose of bankruptcy laws?
A. Give creditors an opportunity to recover from overwhelming debt
B. Give debtors an opportunity to recover from overwhelming debt
C. Pay selected creditors only
D. Pay only selected debtors
B. Give debtors an opportunity to recover from overwhelming debt
23. Max lost his arm in a farming accident. Which type of insurance will cover this loss?
A. Dental
B. Spouse rider
C. Long-term care
D. Accidental death and dismemberment
D. Accidental death and dismemberment
24. Roger wants to purchase insurance that will provide financial support for his family in the event of his death. Which insurance should he purchase?
A. Life
B. Auto
C. Homeowners
D. Renters
A. Life
22. John wants to add his new wife to his existing life insurance policy. Which type of insurance will John
purchase?
A. Dental
B. Spouse Rider
C. Long Term Care
D. Accidental Death and Dismemberment
B. Spouse Rider
7. Bart has no chance of getting out of debt and needs to liquidate all his
belongings to pay creditors. Bart should file for which type of bankruptcy?
A. Chapter 7
B. Chapter 11
C. Chapter 12
D. Chapter 13
A. Chapter 7
27. On her 65th birthday, Teresa needs health care for a medical procedure. What type of social security
benefit can she receive?
A. Disability
B. Medicare
C. Retirement
D. Survivors’
B. Medicare
1. Tammy obtained a loan with an interest rate of 39.99% from a bank. Which law did this financial
institution violate?
A. Credit Card Act of 2009
B. Usury Law
C. Truth In Lending Law
D. Fair Credit Reporting Act
B. Usury Law
30. Jose falls off a ladder at work and breaks his leg. Social security could cover him under what type of benefit?
A. Disability
B. Medicare
C. Retirement
D. Survivors’
A. Disability
20. Fran is 80 years old and has to go to the doctor every month for treatments. What type of social security benefit will cover her?
A. Disability
B. Medicare
C. Retirement
D. Survivors’
B. Medicare
2. Vince is being threatened by his credit card company after falling behind in his payments. What law protects him against this concern?
A. Equal Credit Opportunity Act
B. Fair Credit Billing Act
C. Fair Credit Reporting Act
D. Fair Debt Collection Practices Act
D. Fair Debt Collection Practices Act
10. Jason lost his credit card while on a recent trip. Which act will limit his liability?
A. Federal Deposit Insurance Act
B. Electronic Funds Transfer Act
C. Thrift and Bank Fraud Act
D. Home Equity Loan Consumer Protection Act
B. Electronic Funds Transfer Act
29. James and Joan Smith are married. The Smiths have a whole life policy with a face amount of $100,000 on each of them. The Smiths have three children. Joan’s single sister, Mary, lives with them and cares for the children. The Smiths do not have a will. Mr. and Mrs. Smith are concerned
about dying together in an auto accident. To be sure their children get
the life insurance money, how should the children be listed in the policy?
A. Beneficiaries
B. Contingent beneficiaries
C. Heirs
D. Insureds
B. Contingent beneficiaries
21. During a recent violent storm in Kate’s town, a large oak tree fell through the middle of her living room. Which type of insurance will cover the
damages?
A. Life
B. Auto
C. Homeowners
D. Renters
C. Homeowners
6. Danielle applied for a position with the FBI. She has the right to know that they viewed her credit history
while checking her background. This right is granted by which act?
A. Credit Card Act of 2009
B. Usury Law
C. Truth In Lending Law
D. Fair Credit Reporting Act
D. Fair Credit Reporting Act
12. Michelle obtained a letter from Nordstrom stating that her credit
application had been approved. Michelle can spend up to $15,000 and the annual interest rate is 15.99%. Nordstrom followed which law?
A. Credit Card Act of 2009
B. Usury law
C. Truth In Lending Law
D. Fair Credit Reporting Act
c. Truth In Lending Law
9. VISA increased Jimmy’s interest rate from 10.99% to 15.99% without
notifying him of this change in writing. Which law did VISA violate?
A. Credit Card Act of 2009
B. Usury law
C. Truth In Lending Act
D. Fair Credit Reporting Act
A. Credit Card Act of 2009
5. Kristin obtained a loan from a bank, but she never received a statement
telling her repayment terms and the annual percentage rate. Which law
did this financial institution violate?
A. Credit Card Act of 2009
B. Usury law
C. Truth In Lending Act
D. Fair Credit Reporting Act
C. Truth In Lending Act
11. Craig returned a recently purchased stereo to Electronic Warehouse for a full refund. Last week Craig’s credit card bill still showed a charge for the purchase. What law could help Craig correct this error?
A. Disputed Charges Reform Act
B. Fair Credit Billing Act
C. Fair Credit Reporting Act
D. Federal Trade Commission Act
B. Fair Credit Billing Act
4. Catherine has $175,000 in an account at Bank of America. Which act protects her account if the bank
fails?
A. Federal Deposit Insurance Act
B. Electronic Fund Transfer Act
C. Thrift and Bank Fraud Act
D. Home Equity Loan Consumer Protection Act
A. Federal Deposit Insurance Act
19. Linda stepped into a hole and fractured her ankle while delivering a package to Carol’s residence. Which type of insurance would cover her injuries?
A. Life
B. Auto
C. Homeowners
D. Renters
C. Homeowners
25. After agreeing to sell her home to Jack, Lila refuses to turn over the
paperwork due to a better offer from Sam. Jack needs to ask a judge to
stop the sale to Sam by getting what?
A. Delegation
B. Injunction
C. Mitigation of damages
D. Money damages
B. Injunction
13. Jan’s landlord threatens to report unsubstantiated debts on her credit.
What law protects Jan against this concern?
A. Equal Credit Opportunity Act
B. Fair Credit Billing Act
C. Fair Credit Reporting Act
D. Fair Debt Collections Act
C. Fair Credit Reporting Act
28. James and Joan Smith are married. The Smiths have a whole life policy with a face amount of $100,000 on each of them. The Smiths have three children. Joan’s single sister, Mary, lives with them and cares for the children. The Smiths do not have a will. Mr. Smith wants Mrs. Smith to
get the money from the insurance if he dies. How should Mrs. Smith be
listed in the policy?
A. Beneficiary
B. Contingent beneficiary
C. Heiress
D. Insured
A. Beneficiary
26. James and Joan Smith are married. The Smiths have a whole life policy with a face amount of $100,000 on each of them. The Smiths’ financial
budget is tight, but they need more life insurance protection. What kind
of policy would be the best buy for the Smiths?
A. Comprehensive
B. Liability
C. Term
D. Whole
C. Term
16. Tommy met with his financial planner and discussed retirement options.
Due to Tommy’s poor health, the planner suggested he purchase insurance that would provide coverage in case he could no longer take
care of himself. Which type of insurance will Tommy purchase?
A. Dental
B. Spouse rider
C. Long-term care
D. Accidental death and dismemberment
C. Long-term care
14. Janet stole money from several different checking accounts. She had to
pay a $5,000 fine and spent five years in prison. Janet violated which act?
A. Federal Deposit Insurance Act
B. Electronic Funds Transfer Act
C. Thrift and Bank Fraud Act
D. Home Equity Loan Consumer Protection Act
C. Thrift and Bank Fraud Act
15. Joan is concerned she will be turned down for a loan because she is a
single female. What law protects her against this concern?
A. Equal Credit Opportunity Act
B. Fair Credit Billing Act
C. Fair Credit Reporting Act
D. Fair Debt Collections Act
A. Equal Credit Opportunity Act
17. When Rick begins his new job, he gets insurance and pays for it monthly He develops Cancer and must have radiation treatments. His insurance will not cover the radiation treatments. What term identifies this situation?
A. Cancellation
B. Exclusion
C. Expiration
D. Renewal
B. Exclusion
18. Michael works for Omega Company. All employees at Omega are offered
health insurance through XYZ Insurance. Omega pays the cost of Michael’s major medical health insurance. Michael pays $200 per month
for coverage on his wife and children through a payroll deduction. What type of health insurance does Michael have?
A. Group
B. Individual
C. Personal
D. Private
A. Group